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CHDAP is short for California Homebuyer’s Down payment Assistance Program .It is a loan program designed to help homebuyers borrow up to a 3% silent second deed at below-market interest when buying a new home in the state of California. Such a loan is meant to be used with other first deed loan programs to cover the down payment and closing costs associated with buying of a home. It is available for eligible borrowers who can show their ability to repay the mortgage loan at a later date enabling borrower’s to use this program in conjunction with other loan programs to gather up enough capital that can make it possible for them to buy their dream home.

Borrower Requirements

In order to qualify for CHDAP, a borrower must meet a set of minimum requirements. It is important to review these requirements so that you can see if this program is for you.

First of all, you must live in the US as a permanent resident or any other status that allows you to live in this country for an indefinite time period. Secondly, you must be a first-time homebuyer in order to qualify for this loan program. A first-time homebuyer is considered a person who has not owned their own home in the last three years. Borrowers will be required to complete a Homebuyer education program.

Income Limits

In addition to this, there are certain income limits and loan requirements of the lender and the mortgage insurer that you will need to meet.

This loan program has been designed for low and moderate income first-time homebuyers who cannot afford to pay the down payment of the home they wish to buy. Review the income limits applicable for deeds behind FHA loans and income limits for subordinates used behind VA, USDA or conventional loans.

The income limits increase based on number of family members residing in the home.

Property Requirements

You can apply for a loan under CHDAP to buy certain types of homes located in the state of California from single family homes to condominiums, provided its sale price falls under the limit already specified. Check out the sales price list to determine the limit on the property you wish to buy that is located in a specific county. In addition to sales price, there is also a limit on the size of the property and that is five acres. The single family homes may include a guest house or in-law quarters . Homes cannot be 2-4 units or income producing. Manufactured homes are allowed subject to guidelines.

Silent Second

Payment on the CHDAP second is deferred till the first note reaches maturity or becomes due for any reasons such as refinancing the first or default on the first that cause the first deed to be accelarated.

No monthly payments are due till maturity. No monthly payments are considered for qualification.

Interest rate is fixed below market and is simple rate of interest.

We offer the CHDAP program in conjunction with FHA, Conventional and VA loans.

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1) Taxable income needs to have dropped 20%+ before the Bankruptcy,Short Sale,Deed In Lieu,Foreclosure.Lets say BK was in 2013,was the taxable income in any one preceding year 20%+ less than the immediate previous year .